Are you considering expanding or starting a business overseas but wondering where to target?
Singapore is an award-winning business location with a robust international-standard workforce, infrastructure, and facilities.
The country’s economy appeals to foreign investors. The policies are appropriate for business operations. No wonder Singapore has over 7000 multinational firms, more than half of which run in the capital city.
These are ten reasons many foreign investors start or relocate their companies to Singapore.
1. Strategic Gateway to ASEAN Markets
Singapore sits strategically between Indonesia and Malaysia, offering intangible access to trade and transport links to Southeast Asia. The strategic location makes the country a great destination for investors, enabling them to navigate the opportunities and challenges offered by ASEAN markets. The country offers a lively region with ten member countries and over 660 million people.
You can seek help from professional Singapore company formation experts to leverage the fast-growing economic alliances. Your company can be in any industry, including logistics, e-commerce, manufacturing, and FinTech.
The country has extensive global and regional trade agreements, enabling companies to tap into the markets and reap reduced tariffs and streamlined cross-border operations. Also, you can leverage advanced financial systems, efficient transportation networks, and robust infrastructure to run smooth business transactions.
2. 100% Foreign Ownership
Many countries limit 100% foreign ownership to defend national interests, enhance local development, and protect domestic economies. However, Singapore lets you own 100% of the company stock without needing a local shareholder or partner. You can start a company with your preferred capital structure, enabling you to distribute ownership to the most favorable needs.
Also, the company has no strict limits on profit repatriation. That means you have no requirement to pay tax on capital gain or dividends owned by shareholders. These rules make conducting business in the country more feasible.
3. Robust Digital Infrastructure
Singapore stands out for its robust digital infrastructure, enabling seamless international transactions. Its world-class digital infrastructure facilitates efficient data distribution and management. You will find multiple cloud computing facilities and data centers that attract leading tech players. That positions companies for perfect access to global data assets, which allows for more data-driven decisions and profitable investments.
4. Tax Incentives
Singapore has a rewarding business program that promises to improve its economic growth with non-fiscal and fiscal incentives.
Applicants should meet investment-specific levels and have teams with leading-edge skills. They should also integrate advanced technologies and contribute to innovation and research capabilities.
The country has a business-friendly tax region, offering cost-effective processes to meet legal regulations in Singapore. You can leverage their tax schemes and incentives to minimize your corporate income tax.
5. Political Stability
Political stability is one of the most intriguing reasons many entrepreneurs expand and start businesses in Singapore. The country maintains a high credibility in the rule of law, governance, and transparency. The well-established regulatory and legal framework offers an unfailing and predictable environment, reducing risks and uncertainties. Even during economic disruptions and government policy changes, you can rest assured of achieving optimal stability and efficiency in business operations.
The Singapore government runs pro-business policies, establishing an environment towards innovation and entrepreneurship. Low corruption levels and distinct differences between business and politics offer the space to grow your business without fearing political interference.
6. Robust English-Speaking Workforce
One thing Singaporeans do best is share linguistic and cultural connections with ASEAN members. The country has one of the most skilled labor forces that serve as intermediaries for Asian-targeting investments. Its workforce ranks top in the Asia Pacific and second globally according to the 2021 INSEAD Global Talent Competitiveness Index.
The country stands out for its massive adoption of ICT, ranking top among the top giants. Also, they benefit from government schemes that improve wages and employment for local workers, enabling the government to co-fund wage increases.
7. Transparent Legal System
Many countries rarely have a clear set of rules for investors to follow when penetrating their markets. Singapore has one of the most straightforward and transparent legal systems, allowing international investors an opportunity to penetrate their markets with minimal hassle. Overseas decision-makers can learn about these laws and make more profitable investment decisions.
You will find many businesses want to penetrate Singapore because of the company’s efficient and transparent environment. You can establish, manage, and even dissolve your company online through trusted online providers.
8. Intellectual Property Protection
Losing intellectual property leaves a company with unredeemable financial and reputational loss. Few countries have laws to protect your intellectual property, especially for artists and creators.
You want to invest in a reliable country with robust intellectual property protection rules like Singapore. That enables a creative atmosphere to let you flourish without fear of losing your creations. Your company can take legal action against infringement in Singapore.
9. Double Taxation Agreements
Signore signed an over 80-member treaty to remove double income taxation. The agreement prevents you from paying double tax on your income. You only pay once for the profits your company earns from Singapore-based business. The treaty ensures lower tax rates for companies with subsidiaries or holdings.
You earn a smooth income flow running your business in Singapore, ensuring you avoid money lost to double taxation. You can leverage the country’s unilateral tax credits, enabling you to protect your income.
10. Wider Networking System
Singapore has partnerships with several developed and developing countries across the world. These partnerships let you access the fastest-growing economies and markets, including India, China, and the USA. Also, Singapore has a robust transportation system with better routes for transporting goods within and outside the country.
Singapore connects to most Asia-Pacific, European, Middle East, and North American cities via Changi Airport. The country has a busy port with extensive international connections, streamlining trade and business operations.
Wrapping Up
Thousands of international businesses start daily. Many others expand their operations to known and unknown global locations.
Singapore is one of the few global countries with the safest and most friendly environment for conducting business. They have friendly laws, enabling businesses to operate without much of a challenge, primarily legal and related fines. You have the rights to 100% company ownership rights, meaning you can avoid selling shares to locals when you do not need to.
